UN Chief Warns of Imminent Financial Collapse of the Organisation

United Nations Secretary-General Antonio Guterres has warned member states that the international body is facing a severe financial crisis, with the risk of financial collapse looming in the near future if the current situation persists.

According to a letter reviewed by Reuters, Guterres wrote to country representatives that the UN’s financial crisis is deepening and directly threatens the implementation of its programmes and missions. He noted that the situation could worsen in the coming months.

Guterres warned in the letter that the UN’s cash reserves might be depleted by July. He emphasized that either all member states must meet their commitments to pay their contributions in full and on time, or fundamental reforms to the UN’s financial rules must be undertaken to prevent financial collapse.

The United Nations has been struggling with liquidity shortages for several months. Meanwhile, the United States has reduced voluntary contributions to UN agencies and continues to withhold payment of its compulsory dues to the UN’s regular budget and peacekeeping budgets—a situation that has further exacerbated financial pressure on the international organisation.